Sepang Aircraft Engineering (SAE), an MRO centre based in Kuala Lumpur, Malaysia, partially owned by Airbus since 2011, has become a fully owned Airbus subsidiary, following the acquisition by Airbus of its remaining shares.

With this acquisition, SAE becomes an integral part of the Airbus Customer Services network and is set to represent a key element of Services by Airbus’ growth strategy in the dynamic Asia Pacific market.

“Since its creation in 2007, SAE has established a strong reputation in the MRO market for on-time and reliable service,” said Laurent Martinez, Head of Services by Airbus. “Our ambition is for SAE to be a leading MRO in the region by becoming an innovation flagship for servicing Airbus commercial aircraft.”

As recently as September 2017, SAE celebrated the opening of a second hangar to deal with increasing demand. The MRO now has a combined floor area of some 50,000 square metres. The first hangar can accommodate up to six single-aisle aircraft or two widebody aircraft, while the second hangar can accommodate two A320 aircraft at any time for major maintenance checks. It also features Malaysia’s first eco-friendly closed-door dedicated paint bay, as well as state-of-the-art workshops for the repair and overhaul of a wide range of aircraft components, including hydraulic and pneumatic systems.

In addition to its commercial aircraft activities, SAE provides spare parts and technical support services to the Royal Malaysian Air Force’s fleet of A400M military airlifters. The facility also houses a major regional inventory of spare parts for Airbus single-aisle and wide-body aircraft for airlines that have selected the Airbus Flight Hour Services (FHS) total support package for their fleets.

13/10/2017 – The Airbus built, pollution monitoring satellite Sentinel-5 Precursor has been successfully launched on a Rockot from the Plesetsk Cosmodrome in Russia at 09.27 GMT today.

Sentinel-5 Precursor is part of the global monitoring programme “Copernicus”, a joint European Commission–European Space Agency undertaking which aims to acquire continuous and accurate Earth observation data and provide services to improve the management of the environment, understand and mitigate the effects of climate change, and ensure civil security.

Sentinel-5 Precursor will provide essential atmospheric chemistry data to the Copernicus programme before the Sentinel-5 instrument becomes operational in 2021 on the MetOp Second Generation satellite.

Airbus was prime for Sentinel-5 Precursor, with four sites involved in development and manufacturing of the satellite and its components: Stevenage (UK – prime contractor), Toulouse (France), Friedrichshafen (Germany) and Leiden (Netherlands).

Colin Paynter, Managing Director of Airbus Defence and Space in the UK said: “Today’s successful launch again moves forward the European Sentinel programme in which Airbus is playing a key part. Sentinel-5 Precursor was built in record time using the commercially successful AstroBus platform, and demonstrates Airbus’ ability to adapt its range of hardware to new missions to meet important operational needs.”

The UK’s Universities and Science Minister Jo Johnson MP said: “The successful launch of the Sentinel-5 Precursor satellite is a clear demonstration of the UK’s valuable contribution to improving global knowledge through satellite data, and the heights we can reach by collaborating with our European partners. Our ongoing investment in the UK space sector forms a key part of our Industrial Strategy, and we are committed to ensuring that we have the infrastructure and skills in place to support our ambition to capture 10% of the global space market by 2030.”

“With Sentinel-5 Precursor in orbit, we have achieved another important milestone that takes the European Commission-led Copernicus programme into a new area: observing the air that we breathe,” said Josef Aschbacher, Director of ESA’s Earth Observation Programmes. “Without the substantial contribution of the Netherlands to the TROPOMI instrument on board this satellite, we would not have been able to build this satellite. And it was a European collaboration of 30 high-tech companies under the leadership of Airbus Defence and Space which made the mission possible.”

Sentinel-5 Precursor features the TROPOMI (TROPOspheric Monitoring Instrument) instrument, developed by Airbus DS Netherlands for the European Space Agency (ESA) and the Netherlands Space Office. TROPOMI will measure ozone, nitrogen dioxide, sulphur dioxide, methane and other atmospheric pollutants at a higher resolution than previous instruments. Having more accurate atmospheric data will enable improved climate models and pollutant tracking and forecasting. The MetOp Second Generation spacecraft will feature a different Sentinel 5 instrument.

Successful separation of Sentinel-5 Precursor from the launcher was achieved at 10:46 GMT.

About Airbus Airbus is a global leader in aeronautics, space and related services. In 2016, it generated revenues of € 67 billion and employed a workforce of around 134,000. Airbus offers the most comprehensive range of passenger airliners from 100 to more than 600 seats and business aviation products. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of the world’s leading space companies. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions worldwide.

The fleet size of operators in the Middle East is forecast to more than double from 1,250 to 3,320 aircraft over the next two decades, according to the Airbus Global Market Forecast.

The Middle East will need some 2,590 new aircraft by 2036, for replacement of 520 older generation aircraft, and 2,070 aircraft for growth, 730 are expected to remain in service over the period. This demand includes 1,080 for twin-aisle aircraft, with the same number of single-aisle aircraft (1,080), and 430 very large aircraft.

Overall, future demand for the Middle East’s fleet is valued at US$600 billion from a total market value US$5.3 trillion. The current orders from Middle East-based carriers stand at 1,319 aircraft, of which 687 are single-aisle, 409 twin-aisle and 162 very large aircraft.

Passenger traffic to from and within the Middle East will grow 5.9% annually until 2036, well above the global average of 4.4%. While traffic between traditional markets will grow at a steady rate, the highest growth is expected to be on routes to Latin America (8.5% per year to 2036). Global freight traffic will see an annual 3.8% increase to 2036. Freight traffic growth from the region is expected to be highest between the Middle East and the Asia-Pacific, with 4.0% annual growth to 2036.

“Thanks to the A350, the A380 and also the A320 Family, most people around the world are just one flight away from the Middle East. The region’s proximity to the world’s population and growth markets has been a key in its aviation success and Airbus is proud to have been a partner in its development from day one,” said John Leahy, Chief Operating Officer Customers, Airbus Commercial Aircraft.

Today, 30% of the people in emerging markets such as India, China and some countries in ASEAN take a least one trip by air on average and by 2036 this will grow to just over 80%.

At present, there are 58 aviation mega-cities across the globe, accounting for more than a million daily long-haul passengers. By 2036, there will be 95 mega-cities, catering to 98% of the world’s long-haul services. The five mega cities existing today In the Middle will more than double to eleven over the next 20 years.

Commitment to Québec: C Series Aircraft Limited Partnership headquarters and primary assembly to remain in Québec, with the support of both companies’ global supply chains

Airbus’ global industrial footprint expands with the C Series Final Assembly Line in Canada, resulting in a positive impact on operations in Québec and across the country

Growing market for C Series results in second Final Assembly Line in Mobile, Alabama, serving U.S. customers

Amsterdam / Montreal, 16 October 2017 – Airbus SE (EPA: AIR) and Bombardier Inc. (TSX: BBD.B) are to become partners on the C Series aircraft programme. A corresponding agreement was signed today. The agreement brings together Airbus’ global reach and scale with Bombardier’s newest, state-of-the-art jet aircraft family, positioning both partners to fully unlock the value of the C Series platform and create significant new value for customers, suppliers, employees and shareholders.

Under the agreement, Airbus will provide procurement, sales and marketing, and customer support expertise to the C Series Aircraft Limited Partnership (CSALP), the entity that manufactures and sells the C Series. At closing, Airbus will acquire a 50.01% interest in CSALP. Bombardier and Investissement Québec (IQ) will own approximately 31% and 19% respectively.

CSALP’s headquarters and primary assembly line and related functions will remain in Québec, with the support of Airbus’ global reach and scale. Airbus’ global industrial footprint will expand with the Final Assembly Line in Canada and additional C Series production at Airbus’ manufacturing site in Alabama, U.S. This strengthening of the programme and global cooperation will have positive effects on Québec and Canadian aerospace operations.

The single aisle market is a key growth driver, representing 70% of the expected global future demand for aircraft. Ranging from 100 to 150 seats, the C Series is highly complementary to Airbus’ existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats). The world class sales, marketing and support networks that Airbus brings into the venture are expected to strengthen and accelerate the C Series’ commercial momentum. Additionally, Airbus’ supply chain expertise is expected to generate significant C Series production cost savings.

Airbus is strongly committed to Canada and its aerospace sector with Canadian suppliers extending their access to Airbus’ global supply chain. This new C Series partnership is set to secure jobs in Canada for many years to come.

"This is a win-win for everybody! The C Series, with its state-of-the-art design and great economics, is a great fit with our existing single-aisle aircraft family and rapidly extends our product offering into a fast growing market sector. I have no doubt that our partnership with Bombardier will boost sales and the value of this programme tremendously,” said Airbus Chief Executive Officer Tom Enders. "Not only will this partnership secure the C Series and its industrial operations in Canada, the U.K. and China, but we also bring new jobs to the U.S. Airbus will benefit from strengthening its product portfolio in the high-volume single-aisle market, offering superior value to our airline customers worldwide."

“We are very pleased to welcome Airbus to the C Series programme,” said Alain Bellemare, President and Chief Executive Officer of Bombardier Inc. “Airbus is the perfect partner for us, Québec and Canada. Their global scale, strong customer relationships and operational expertise are key ingredients for unleashing the full value of the C Series. This partnership should more than double the value of the C Series programme and ensures our remarkable game-changing aircraft realizes its full potential.”

“The arrival of Airbus as a strategic partner today will ensure the sustainability and growth of the C Series programme, as well as consolidating the entire Québec aerospace cluster. In the current context, the partnership with Airbus is, for us, the best solution to ensure the maintenance and creation of jobs in this strategic sector of the Québec economy," said Québec’s Deputy Prime Minister, Minister of Economy, Science and Innovation and Minister responsible for Digital Strategy, Dominique Anglade.

Ownership Structure and Agreement Highlights

The C Series programme is operated by CSALP in respect of which Bombardier and IQ respectively hold approximately a 62% and a 38% interest. The Investment Agreement contemplates Airbus acquiring a 50.01% interest in CSALP. Airbus will enter into commercial agreements relating to (i) sales and marketing support services for the C Series, (ii) management of procurement, which will include leading negotiations to improve CSALP level supplier agreements, and (iii) customer support. At closing, there will be no cash contribution by any of the partners, nor will CSALP assume any financial debt. It also contemplates that Bombardier will continue with its current funding plan of CSALP and will fund, if required, the cash shortfalls of CSALP during the first year following the closing up to a maximum amount of US$350 million, and during the second and third years following the closing up to a maximum aggregate amount of US$350 million over both years, in consideration for non-voting participating shares of CSALP with cumulative annual dividends of 2%, with any excess shortfall during such periods to be shared proportionately amongst Class A shareholders.

Airbus will benefit from call rights in respect of all of Bombardier’s interest in CSALP at fair market value, with the amount for non-voting participating shares used by Bombardier capped at the invested amount plus accrued but unpaid dividends, including a call right exercisable no earlier than 7.5 years following the closing, except in the event of certain changes in the control of Bombardier, in which case the right is accelerated. Bombardier will benefit from a corresponding put right whereby it could require that Airbus acquire its interest at fair market value after the expiry of the same period. IQ’s interest is redeemable at fair market value by CSALP, under certain conditions, starting in 2023. IQ will also benefit from tag along rights in connection with a sale by Bombardier of its interest in the partnership.

The Board of Directors of CSALP will initially consist of seven directors, four of whom will be proposed by Airbus, two of whom will be proposed by Bombardier, and one of whom will be proposed by IQ. Airbus will be entitled to name the Chairman of CSALP.

Subject to obtaining the required approval from the Toronto Stock Exchange, the transaction also provides for the issuance to Airbus, upon closing, of warrants exercisable to acquire up to 100,000,000 Class B Shares (subordinate voting) of Bombardier (representing approximately 5% of the aggregate issued and outstanding Class A Shares (multiple voting) and Class B Shares of Bombardier on a fully-diluted basis, and approximately 5% of the aggregate issued and outstanding Class A Shares and Class B Shares on a non-diluted basis), at an exercise price per share equal to the US$ equivalent of C$2.29, which represents the volume-weighted average price of the Class B Shares over the five trading days ending Friday, 13 October 2017. The warrants will have a five-year term from the date of issue, will not be listed and will provide for market standard adjustment provisions, including in the event of corporate changes, stock splits, non-cash dividends, distributions of rights, options or warrants to all or substantially all shareholders or consolidations.

The issuance of the warrants and their terms were negotiated between Bombardier and Airbus at arm’s length and will not materially affect control of Bombardier. Security holder approval will be required under Toronto Stock Exchange rules due to the fact that the warrants will be issued later than 45 days from the date upon which the exercise price was established. Such approval is expected to be obtained by way of written consent of shareholders holding more than 50% of the voting rights attached to all of Bombardier’s issued and outstanding shares.

The transaction has been approved by the Boards of Directors of both Airbus and Bombardier, as well as the Cabinet of the Government of Québec. The transaction remains subject to regulatory approvals, as well as other conditions usual in this type of transaction. There are no guarantees that the transaction will be completed and that the conditions to which it is subject would be met. Completion of the transaction is currently expected for the second half of 2018.
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This article reviews a concept for the use of commercial suborbital spacecraft for military purposes, allowing the Air Force once again to enhance survivability via altitude and airspeed. By utilizing commercial technology, suborbital spacecraft will be able to reach the battlefield faster than aircraft generated by the traditional pro-curement process, just as the Liberty program rapidly fielded effective combat air-craft.